Module 1 - Introduction

EAGLE Training ProgramModule 1 – Introduction: EAGLE Program Overview

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Introduction

• What is EAGLE?

• What is the purpose of EAGLE?

• Why is EAGLE needed?

• What to expect?

• EAGLE Timeline

• Today’s Training Program

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What is EAGLE?

• EAGLE: Enhancing Accountability in Government

through Leadership and Education.

• EAGLE is North Carolina’s new internal control

program established by the Office of the State

Controller (OSC).

• EAGLE resulted from the passage of House Bill 1551

during 2007 session of the General Assembly.

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House Bill 1551Establishes the following responsibilities and requirements:

• The State Controller, in consultation with the State Auditor, shall establish

comprehensive standards, policies and procedures to ensure a strong and

effective system of internal control within State government.

• The management of each State agency bears full responsibility for establishing

and maintaining a proper system of internal control within that agency. Each

principal executive officer and each principal fiscal officer shall annually

certify…that the agency has in place a proper system of internal control.

• Each State agency shall maintain documentation, as prescribed by the State

Controller, of the system of internal control within that agency. All internal

control documentation shall be available upon request for examination by the

State Controller and State Auditor.

See Handout 1

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What is the Purpose of EAGLE?

• To enact the State Governmental Accountability and

Internal Control Act

• To establish internal control standards for State government

• To increase fiscal accountability within State government

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Why is EAGLE Needed?

• This is an opportunity for North Carolina to leverage the leading practices that have been implemented in the private sector.

• This new methodology will further solidify North Carolina’s status as a national leader in governmental accountability and fiscal management.

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Continuing to be a National Leader

• North Carolina has a solid foundation on which it is ready to build.

• North Carolina is one of the few states with a Triple-A credit rating from all three major bond-rating houses.

• Agencies now have the opportunity to document and be accountable for many steps they currently carryout.

• The EAGLE Program offers an opportunity for us to continue demonstrating the forward thinking leadership our citizens deserve.

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What to ExpectAgency Responsibilities

• Adhere to the statutorily mandated requirements of House

Bill 1551 and the related requirements as prescribed by the

OSC.

• Upload to the EAGLE website:

– All required internal control assessment documents in accordance

with the prescribed schedule.

– All significant changes, issues, corrective actions and resolutions

in accordance with the prescribed schedule.

• Complete annual self-assessment checklist to assist the

OSC in determining efficiency and effectiveness of the

EAGLE Program.

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What to ExpectOSC Responsibilities

• EAGLE Rollout

– OSC will provide training to Agency core assessment teams.

– OSC will co-develop with Ernst & Young a guidance manual as an information source for Agencies.

• Ongoing Assistance

– OSC assistance via the EAGLE website will include:

• General communication matters

• Contact information

• Frequently Asked Questions (FAQs) and responses

– OSC to provide one-on-one assistance.

• Ongoing Monitoring

– OSC will provide recommended completion dates for each milestone on the EAGLE website.

– OSC will periodically distribute surveys to gauge effectiveness of the EAGLE Program.

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EAGLE SharePoint Portal

• As self assessment documents are completed,

they are to be loaded to the EAGLE SharePoint

Portal.

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Module 1 - Introduction

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EAGLE Timeline

• Training Sessions

– Group Two – October 22, 2008

– Remaining Agencies – Fall 2009

• Agency Assessments

– Group One – Complete by July 31, 2009

– Group Two – Complete by July 31, 2009

Note: Remaining Agencies will continue using the Internal Control

Questionnaire for Fiscal Year 2009.

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Navigating Today’s Training

• Agenda

• Ground rules

• Logistics

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Today’s Training Program

Estimated Time Module

8:00 - 8:30 Module 1: Introduction

8:30 - 9:00 Module 2: Overview of Internal Control over Financial Reporting

9:00 - 9:30 Module 3: Top-Down, Risk-Based Approach

9:30 - 9:45 Break

9:45 - 10:30 Module 4: Identifying Risk – The Risk Assessment Process

10:30 - 11:30 Module 5: Introduction to Processes and Controls

11:30 - 1:00 Lunch

1:00 - 2:00 Module 6: Documentation of Processes and Controls

2:00 - 3:00 Module 7: Testing Theory and Strategy

3:00 - 3:15 Break

3:15 - 3:45 Module 8: Assessment - Agency Self-Assessment

3:45 - 4:15 Module 9: Fraud Concepts

4:15 - 4:30 Module 10: Conclusion